A house cost $85,000. The price of the house will raise 5% each year. If the price actually rise at that rate, what will the price, P, of the house equal in y years.

Question

a. Make a table for 5 years
B. Explain how you calculated the price
c. What number do you need to use if you want to multiply the output vaules for year 3 to get the vaule of year 4

Answer 1

now: 85000
1st year : 85000(1.05)
2nd year: 85000(1.05)^2
etc

can you see what I did ?

Answer 2

4462 .50